This is a nice Cypher pattern on a 4 hour chart. I'm now using the 1 hour to pinpoint my entry instead of the usual 78.6% X to C leg. The sole reason is the momentum looks too good to go long. Thus, instead of trading blindly, i opt to wait. If during the process the rally exceed point X, it nullifies the trade and save some bucks for me. 1 Hour already signify a potential short (above 80%) and the pattern also confluence with a bearish structure from $49 to $50.50.
So once there is a "lower high lower candle" on the 1 hour chart, I will enter with stop above point X at 49.25 (10 point above X at 49.15). Exit will be the retracement from D to C leg with 38.2% at 61.8%. You could also alter the exits to the high before reversal as point D, in which we call a dynamic exit.
Trade active
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With Point D failing to break X, my first target on the bearish Cypher at 38.2% has been achieved. My entry was at 48.41. I was also cautious on entering too early but it has been compensated with a higher success rate.
I took half my size off at 38.2% at $48 and stop has been moved to breakeven. Next Target is at 47.5.
Trade closed: target reached
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61.8% target achieved and i'd be looking for another setup.